1. What is Statutory Maternity Pay?

Statutory Maternity Pay (SMP) is a payment made to eligible employees in the UK during their maternity leave. It consists of 90% of average weekly earnings for the first 6 weeks, followed by 33 weeks at the lower of the standard SMP rate or 90% of average weekly earnings.

2. How Does the Calculator Work?

The calculator uses the SMP formula:

Where:

• \( AWE \) — Average Weekly Earnings (GBP/week)
• \( SMP_{rate} \) — Standard SMP Rate (GBP/week)
• 6 — Number of weeks at 90% of AWE
• 33 — Number of weeks at the lower rate

Explanation: The calculation provides the first 6 weeks at 90% of average weekly earnings, followed by 33 weeks at either the standard SMP rate or 90% of average weekly earnings, whichever is lower.

3. Importance of SMP Calculation

Details: Accurate SMP calculation is crucial for employers to ensure compliance with employment law and for employees to understand their maternity pay entitlements and plan their finances during maternity leave.

4. Using the Calculator

Tips: Enter average weekly earnings in GBP/week and the current SMP rate in GBP/week. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for SMP?
A: To qualify for SMP, you must have been employed by the same employer for at least 26 weeks by the 15th week before your due date and earn at least the Lower Earnings Limit.

Q2: How is average weekly earnings calculated?
A: AWE is typically calculated based on earnings in the 8 weeks (or 2 months) before the 15th week before your due date.

Q3: What is the current SMP rate?
A: The SMP rate changes annually. Check the latest government guidelines for the current rate.

Q4: How long does SMP last?
A: SMP is paid for up to 39 weeks - 6 weeks at 90% of AWE and 33 weeks at the lower rate.

Q5: Is SMP taxable?
A: Yes, SMP is subject to income tax and National Insurance contributions, just like regular pay.